ABC.Net
Friday, February 9, 2007. 10:06am (AEDT)
Company moves to establish third domestic airline
The Singapore-based Tiger Airways says it is getting a positive response from the Federal Government for plans to start competing on Australia's domestic air routes.
Tiger Airways, which is half-owned by Singapore Airlines, has applied for a licence to take on Virgin Blue and the Qantas Group on Australia's domestic routes.
Mr Davis met federal Transport Minister Mark Vaile yesterday.
Tiger Airways already flies between Darwin and Changi Airport and will start a service to Perth next month.
The airline says fares in Australia are too high and has accused Virgin Blue and Qantas of returning to a "cosy duopoly" and increasing fares.
The airline's chief executive officer, Tony Davis, has told ABC Radio's AM program that it expects to be flying Australia's domestic skies before the end of the year.
"The response generally was very favourable but we need to go through the proper processes now with the Federal Government and the regulatory authorities to make sure that we get the licence issued as quickly as we can," he said.
"We've got five new Airbus A-320s ready to bring into Australia as soon as we complete that process."
Mr Davis says the Federal Government understands that competition is good for consumers.
"I think they can see that additional air services, particularly at the affordable fares that Tiger will be bringing into the market, will help stimulate tourism, both domestic and international," he said.
The Federal Transport Minister, Mark Vaile, has welcomed Tiger Airways' plan to operate domestic flights, but says the airline will have to satisfy safety and security requirements.
Mr Vaile says a new entrant could provide increased competition with advantages for consumers, the tourism industry and the economy.
He says Tiger Airways told him it would focus on regional routes, but the company still needs approval from the Civil Aviation Safety Authority (CASA) and the Transport Department.
Tiger Airways says it will discuss with the Northern Territory Government the possibility of Darwin becoming a hub for domestic flights in Australia.
Tiger's NT representative Mildy Raveane says it is possible Darwin will become a major base for the airline.
"We have received an intent from the Minister Paul Henderson sort of suggesting that because of its location and Tiger being in fact its first port of call into Darwin, that's sort of something we've got to start negotiating," he said.
"As you can appreciate every airport in Australia has been in touch with us trying to get the same sort of deal going."
Last month, Tiger Airlines announced it would be flying between Perth and Singapore four times a week from March, before expanding to a daily service in November.
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